Correlation Between Tofas Turk and Aksa Akrilik
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Aksa Akrilik at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tofas Turk and Aksa Akrilik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tofas Turk Otomobil and Aksa Akrilik Kimya, you can compare the effects of market volatilities on Tofas Turk and Aksa Akrilik and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tofas Turk with a short position of Aksa Akrilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Aksa Akrilik.
Diversification Opportunities for Tofas Turk and Aksa Akrilik
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tofas and Aksa is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Aksa Akrilik Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Akrilik Kimya and Tofas Turk is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tofas Turk Otomobil are associated (or correlated) with Aksa Akrilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Akrilik Kimya has no effect on the direction of Tofas Turk i.e., Tofas Turk and Aksa Akrilik go up and down completely randomly.
Pair Corralation between Tofas Turk and Aksa Akrilik
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to under-perform the Aksa Akrilik. But the stock apears to be less risky and, when comparing its historical volatility, Tofas Turk Otomobil is 1.11 times less risky than Aksa Akrilik. The stock trades about 0.0 of its potential returns per unit of risk. The Aksa Akrilik Kimya is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 611.00 in Aksa Akrilik Kimya on August 28, 2024 and sell it today you would earn a total of 292.00 from holding Aksa Akrilik Kimya or generate 47.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Aksa Akrilik Kimya
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Aksa Akrilik Kimya |
Tofas Turk and Aksa Akrilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Aksa Akrilik
The main advantage of trading using opposite Tofas Turk and Aksa Akrilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Aksa Akrilik can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aksa Akrilik will offset losses from the drop in Aksa Akrilik's long position.| Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise ve |
| Aksa Akrilik vs. Eregli Demir ve | Aksa Akrilik vs. Turkiye Sise ve | Aksa Akrilik vs. Tofas Turk Otomobil | Aksa Akrilik vs. Ford Otomotiv Sanayi |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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